home » GM & Chrysler bailout doomed anyway

GM & Chrysler bailout doomed anyway

by Paula | 23 December 2008 | permalink | comments [1]
Tags: car culture, peak oil
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Bailout Sleuth:

The White House and Treasury Department have come to the rescue of the U.S. auto industry with a $17.4 billion loan package that will be financed through the $700 billion Troubled Asset Relief Program.

General Motors Corp. and Chrysler LLC expected to draw down the first $13.4 billion of that total over the next two months. GM would get $9.4 billion and Chryster would get $4 billion. The remaining $4 billion would become available in February.

The rescue plan will claim the last of the initial $350 billion that Congress authorized for TARP. Treasury Secretary Henry M. Paulson Jr. said he will ask lawmakers to release the second half of the money to fund additional economic-stability efforts.

The term sheet that the Treasury Department released Friday gives the automakers two months to develop preliminary financial and operating plans that would lead to long-term viability, international competitiveness and energy efficiency.

If they cannot demonstrate long term viability by March 31, 2009, the government can call the loans.

What a joke. It boggles the mind how clueless the people in charge of our national economy really are.

UPDATE: Mark Cuban finds Detroit pitifully stupid, too.

comments

1. It obvious the auto industry needs help no matter whose fault it was that led to its failure…let it be the economy, high prices of oil, or just consumer taste preference.

   — tt · 10 February 2009, 20:38 · #

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